Global Central Banks Back Powell, Warn Fed Pressure Could Shake Markets

Governors from 11 major central banks, including the ECB and Bank of England, issued a joint statement expressing "full solidarity" with Federal Reserve Chair Jerome H. Powell and the Fed system, emphasizing the critical importance of central bank independence. This support follows a criminal investigation opened by US authorities into Powell regarding a $2.5 billion renovation of the Fed's headquarters, which has heightened tensions with the Trump administration. Experts noted that political influence on the Fed could undermine macroeconomic stability, potentially driving interest in decentralized assets like crypto due to weakened confidence in the dollar, though it also increases short-term volatility. Meanwhile, President Trump has identified several loyal allies, including Kevin Hassett, as potential Powell successors, many of whom favor interest rate cuts, signaling a potential shift in the Fed's stance.

(Source：Cointelegraph)